Comprehensive income tax return listing medical and maternity expenses

The Taipei National Taxation Bureau of the Ministry of Finance reminds that it is the 2014 comprehensive income tax settlement and declaration period. When people itemize their deductions for medical and childbirth expenses, in addition to confirming that the expenses are medical in nature, they must also pay them to medical institutions that meet the requirements, and portions that are covered by insurance or government subsidies cannot be deducted.

The bureau further explained that medical and childbirth expenses of the taxpayer, spouse or dependent relatives must be paid to public hospitals, National Health Insurance contracted medical institutions, or hospitals whose accounting records are confirmed by the Ministry of Finance to be complete and correct, in order to be itemized as deductions when declaring comprehensive income tax; the list of hospitals (clinics) whose accounting records are confirmed by the Ministry of Finance to be complete and correct has been announced on the Ministry of Finance's tax portal website [ https://www.etax.nat.gov.tw/etwmain , path: Homepage/Tax Information/Hospitals (Clinics) whose accounting records are confirmed by the Ministry of Finance to be complete and correct]. The public can check on the website whether the private medical institutions where they receive medical treatment or consultations meet the requirements for reporting deductions.

The bureau gave an example. Mr. A listed NT$300,000 in deductions for medical and childbirth expenses in his 2013 tax return, of which NT$200,000 was for medical expenses at Dental Clinic B. However, the bureau found that Dental Clinic B was not a public hospital, a National Health Insurance contracted medical institution, or a hospital whose accounting records were recognized by the Ministry of Finance to be complete and correct. Therefore, the bureau denied the deduction of NT$200,000 for medical and childbirth expenses and determined that an additional tax of NT$80,000 should be levied.

The bureau calls on taxpayers to exempt themselves from attaching payment receipts when declaring itemized deductions for medical and childbirth expenses if the deduction amounts are reported based on information provided by the National Tax Bureau for inquiry; if the deduction amounts are increased or revised, payment receipts should still be attached for review by the tax authorities. If you have any questions, please call the toll-free service number 0800-000-321 for consultation, or go to the bureau’s website ( https://www.ntbt.gov.tw ) and use the National Tax Service’s smart customer service “National Tax Assistant” for online inquiries.

(Contact person: Section Chief Su of the Inheritance Tax Group of the Institute; Tel: 2311-3711 ext. 1560)